y the United States in 1941. President Hoover advised business not to cut wages or lay off workers and to continue business as usual. At the beginning of the crash, Hoover chose not to utilize the federal government and felt that it was the duty of the state and local governments to end the depression. But when the American depression affected European economies, Hoover had no choice but to take some drastic reform. His costliest mistake was the introduction of the Hawley-Smoot Tariff of 1930. This raised the tariff rates on foreign goods to the highest point in American history. However, European countries also raised their tariff rates, which made it nearly impossible for the United States to export goods. Also, the Dawes Plan came to a screeching halt when the United States could not send money to Germany and in effect destroying the entire cycle to retain World War I debts from France and Great Britain. President Hoover's actions dealing with foreign dilemmas would only send the United States into worse situations.
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